>> from the financial centers of the world, this is bloomberg markets with alix steel and guy johnson. ♪ alix: it's 30 minutes into be u.s. trading day thursday, august 17. here are the top stories we are following for you this hour. global yields are at a high. walmart raising its annual profit forecast as bargain

shoppers pile in. and with the chinese yuan and how it deepens trade. we will talk about all of it with you. i am still with mike cohost guy johnson. walmart said that they were going to hold up no matter what they do and they say invest in your face. skin care is the key. guy: i did hear that. alix: skin care the trade. guy: my skincare is the best future -- alix: invest in your face. guy: and with walmart which is what you were posing a moment ago, walmart is a good dues -- good news bad news story. it is good news for walmart bad news for everybody else. i think this is a good news is bad news story.

it is bad for other retailers and people get sucked into more good it tells you a lot about consumers that are trading down and what is happening with the economy. it is a good news bad news story. alix: and you have a high end and the low end, the will hold up. it looks like the consumer will be binary. guy: the consumer is totally binary. i think that is the story. that is interesting look at the claims data today how many people have gotten second jobs and their jobs. how many people are having to spend on credit. i think there's an emergency going on and you see it in the data. alix: that is a higher than longer scenario. higher for longer with the yield is not that the consumer is going to fall out of bed. guy: no, there is a good chuck

of the consumer bed is still spending. and a lot of the inflation pressures are doing well. -- inflation pressures are -- you are getting a bear steepening which is telling you a lot about what the expectation is. it is that we will see higher for longer. what gets hurt by higher for longer? katie greifeld is here to answer that question. and is it economy, consumer, financial assets? what gets hurt by higher for longer? nicole: let's go with markets first. you see a selloff in the thing that everyone piled into treasuries. the recession trade is over the soft landing and higher for

longer trade is starting to be entrenched. i'm not sure is people -- with people taking it as bad news one day and good news for another. in the u.k. the markets blog looks obsessed with what is happening in the u.k. housing market. i will go with u.k. housing market. higher for longer, as think they have a more novel medic higher for longer narrative than the fed does. mortgage rates here they are refinanced in the very short-term term. anyone who is refined -- free not -- refinancing will panic around that. and the majority of market has to finance pretty soon. alix: i told you. and to that point, we have been waiting for that for a bit. we've been waiting for the consumer to roll over and we waited for jobless claims to tick higher. add what gets hurt at higher for

longer if it is not heard already? katie: good question. you may see some of that already in the u.s. equity market. square that with the fact it is august and trading is light. but with what we see in the nasdaq 100 with the growth tech oriented stocks which are theoretically long term. the nasdaq is in is third week of losses. he did not see that all year even in the banking turmoil. you are seeing risk assets adjust to login with rates having to be structurally higher from here. and that is as we move into a soft landing and the recession trade fizzles out. guy: isn't that what the ultimate casualty is here, the markets? katie: the markets? guy: no, the soft landing. katie: you may see the soft

landing trade coming into the market. when you think about what is driving higher bond yield is not necessarily the idea that inflation is getting insurance, but the u.s. economy is on good footing. you see the economic data coming in consistently higher than expectations, maybe that is what is by -- driving the reevaluation on the long end of the yield curve. you see risk assets readjusting with the equity market. you have not seen the credit market adjust yet. alix: when you look at today's action, i appreciate the caveats it is europe getting hit harder and harder and not the u.s., i am not understanding why. why are we not getting hit harder across the board in the equity market? guy: the stoxx 600 is below the 200 day moving average. abigail was talking about this, it has the potential to see the market peak a little bit. we may have like volume in the summer. one factor behind it could have

led to that. and walmart is a big story in the states. it is a big politics story you could argue. maybe it is as simple as that. i'm not sure i would read too much into that divergence in the reality of the macro point of view. i think both sides of the atlantic will see higher for longer may be europe does suffer more than the united states. [indiscernible] guy: ok there is probably some positioning there as well. sofia: i was going to say positioning. when things are going well, what is the first things people buy? with the u.s. tech stocks rising and rising everyone saying it is an overvalued market, the moment they go well that is when people start buying they do not go search for cheap value stocks in europe. i think there is a strong home

bias there. and with europe, important economies like germany are not doing well in europe and it is very exposed to china. bad news out of china almost every single day could go on for years around the story. in the u.k. again the higher for longer story i think is a u.k. story and not a u.s. story. i think the markets digest that well because the u.s. economy is strong. we have retail sales data tomorrow in u.k. showing that as well. alix: does that mean a better creditor -- credit market here? katie: i will say in thinking about what sofia was saying on where people go, i want to add, i was having a conversation with the cio of a huge asset manager last week, i will not say who, he was hedging the value of international stocks. the question is how hard of the sale of that when the u.s. equity market is off to the

races. when you think about banks, it is interesting to think about what higher from longer means. that means the treasury bill have higher yield for longer as well. i was looking up money market funds, there is $5.5 trillion and growing in money market funds. you think about the fact that smaller or get banks are having to pay up deposits, the story is still ongoing. it was not wrapped up in april or may. it will be interesting to see how the smaller banks fair. the higher for longer story hit that as well. alix: that's where you get auto loans as well where it is exposed in small businesses. thank you sophia and katie. still to come more on our question of the day what gets hurt by higher for longer we speak with nicole webb at wealth enhancement next. this is bloomberg. ♪

>> yields are probably going to be higher for an extended period of time. >> u.s. 10 year yield are on the way up. >> yields are going up. >> higher for longer.

>> the range of 4.5%. >> most at the 4.5% before we go lower the tendency will be for higher rates. >> 90 at the low end. >> if you believe the economy has a soft landing or no landing whatever name you assigned to it it means rates move higher not lower. >> very bullish on fixed income as well but you do not have to take a lot of risk in order to be successful. >> we are in a different regime. >> the regime we are in pre-pandemic is gone. >> i do not believe we will have higher rates. alix: 4.29 is where we sit on the 10 year. those are the top voices on bloomberg television. it brings us to the question of today what gets hurt by higher

for longer? and nicole webb senior vice president and financial advisor at wealth enhancement group joins us. nicole, what will get hurt with higher for longer? nicole: after the labor day holiday we have a change in volume. we will see a lot of pressure on technology companies and the expansion we have seen your to date with some of the turnover into more value centric investing come the second half of the year. guy: we should probably start, good morning by the way, by asking the question do you think we are headed for higher for longer? nicole: absolutely the data does not support moving away from it. there are pockets of areas that are interesting to us i can make a case for manufacturing appearing to have bottomed out and every acceleration of

housing. we get curious about inflation when we look later at the year with shipping costs from shanghai to los angeles over the last 45 days. oil prices up 22% in the last month. this is going to play through. we do not have a resolve for available workers. i think there may still be pressure on wage inflation if we start to see this we have dropped off recessionary fears, where is business headed? does that include onboarding? it becomes a bit challenging when you think about it in that regard. alix: how do we pair the read that we are getting from target and walmart, for example, in terms of their outlook? it feels like usually we go layoffs, consumer gets hit, and banks get hit. it feels like we are not in that cycle this time. nicole: i really don't think so. i think the consumer is being a bit choosy.

i may have some personal bias in the way that myself and our client at the firm talk about spending habits and change, but part of the story i think of the value trade you may hear people talk about the market might jog in place are what we see over the second half may happen below the surface, but there is still opportunity in equity and major indices may stay flatlined or in a tight trading range. that all plays into the story of the consumer, the inflationary story, the multiple expansion in technology and what it all lynn's to is inflation is not technically terrible for earnings in certain pockets of the economy. the consumer is remaining pretty resilient in the face of the labor market that needs them. guy: higher for longer is not terrible in certain pockets of the financial sector and the consumer sector as well. if you are debt free and have

cash on the balance sheet, this is a great higher for longer, that sounds good to me area that can be pretty good but it goes forward not only consumers but companies are companies out there that finance at relatively low levels they have earnings on their cash which is good in terms of cash flow but the tech companies are an example of this they throw off cash and they are able to reduce their working capital that helps them as well. but with companies that have cash and -- what companies are you looking at the say that is a great place to put my money? nicole: yes, when you start throwing around words or picking up on this being a stock pickers market you are talking about that exact the which is there is an opportunity set for those who have not performed like the index or the major indices globally and also in the story i was hearing the tube you speak to earlier, the play on why so u.s. centric? why trade so differently then

the global market. again, when we think about the large scale companies ac the earnings surprises out of the likes of walmart caterpillar. coca-cola is another example. there are certain companies that are better poised in this environment on a forward look. the availability with some of the stickiness of brand and rod up to pass along some of the more incremental price increases. and they have it absorbed without the decrease to volume. that is where they should stay in expectation of and the second half. alix: what else do you like? nicole: yeah we did not have great buys in the consumer pocket, but going back to taking up our view into specific balance sheets is an example. honeywell is a company that has not performed as one would expect. they tend to move slowly but they also have zero leverage.

and so they have the quantum computing arm of their business. there are names like that, liquid natural gas, natural gas, there are pockets of opportunity that play well into the many possible outcomes for the next six months. guy: do you buy the ai story as it -- the derivative ai story that you should be looking at? nicole: i play the ai story by believing there is still the opportunity for productivity boom in the years ahead. we just did not see productivity -- we did not see productivity i do believe that the investment made in the acceleration of investment made as a result of covid and the likelihood of applications of ai across so many facets of business playing well into productivity. while we might not -- may not

have and cannot create more available workers i believe with the payoff of the application of the technologies. guy: and we should not forget skincare. nicole lovely stuff. alix: invest in your face. invest in your face. guy: it seems to be the story of the day. nicole webb thank you very much indeed. we take you to not the face tory next but shares moving higher. resilient demand with ai demand and potential. that is coming up next. this is bloomberg. ♪

alix: it is 7:22 on the west coast. we get to the top stories in the bay area. silicon valley a little cloudy but a blue little bit morning. and ed ludlow joining us.

cisco is helping the u.s. stocks in the index. it seems like they can deliver from ai instead of talking about it. ed: that is the story. it is a little more sunny down in san jose with cisco. positioning themselves as a beneficiary of ai but they also have evidence this is already happening. sales directly related to ai products. cisco in the round of technology related to ai they make the least sexy and interesting part of it to many, not to me, which is the net working gear. and it is all of these -- think of your cloud providers, aws, and others as you add more compute and you have more data centered capacity. that is where cisco has been a

beneficiary but they are really smart at adding a software component with that. guy: are they being cautious therefore? the guidance has not blown the doors off. ed: it is not. they just closed out the physical 23 year where year on year revenue growth grew 11%. what they are guiding for this coming year is separating the region of $57 billion in sales. slightly below what the average analyst estimate was. it is partly because of a backward looking stories in the last fiscal year. cisco started catching up on all of the orders that were impacted by the pandemic period. cisco is still a seller of hardware and it can shift because of missing parts. those parts became available, there is a big search -- surge in sales growth. next year we go to more like 2% topline growth for the fiscal

year, not as good, but the way the market is looking at it is they are stabilizing. they are becoming less volatile. the big story is the software component. cisco is a legacy og tech name and what they have done with the ceo is focus on recurring revenues not just contract or one-time transactions where you are like this is your networking gear, have at it. they are better at making money. alix: what is the og definition again? ed: original gangster. that is what i used to describe a big tech company. alix: oh i got it, they were like old-school big guy. now they are coming back like in tale and they will come back and be the big, popular guy again. that is impressive. who is the competitor from that point? ed: there are loads of network gear. and let's go back to why those

shares are higher with the slow growth forecast, networking here broadly across the earnings season saw a big hit in profitability. cisco has gross adjusting margins of 65%. so with all of the networking gear providers it is still proving they can make money in abroad macro environment as well. guy: i cannot believe you said the original gangster. that is the way to go area alix: i did not know what it meant. i cannot blame him for answering my question. ed: respectfully old-school would be a better way of putting it. guy: i can understand old-school. i can definitely do old-school. cisco is one of the companies that was in the center of everything because ultimately it does connect very well and it does manage to find the right niche and place to be. it has had difficult times when you look at how cyclical it is

and how they are latching on in this new wave. as you say the connective tissue is the sexy bit honestly. with the networking gear. ed ludlow in san francisco. more is coming up next. this is bloomberg. ♪

it's an amazing thing

when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything. alix: we are about an hour into the trading session. and we have a move in the bond market. stocks going nowhere. abigail: they are going nowhere, but one question would be will we see a bearish reversal? the s&p 500 slightly higher. the s&p 500 has been a little bit higher earlier. the 10 year yield continues to take the show at 4.3%. the vix is close to a 17 handle. the reason i'm highlighting the possibility of a bearish

reversal we will already have it with the nasdaq 100. when we look at the futures we see a big decline. out of the asian session higher and higher now at this point down over 4%. and august is the worst month of the year from the nasdaq 100 down more than 6% at this point. s&p 500 down around 4%. the last time we look at this chart, it was probably right around here making the point that we will see consolidation to the uptrend. will the 200 day moving average move to play. it is unclear, but it is clear that we have this 6-7% decline for -- this is not the s&p 500 this is the nasdaq 100, but again could we see something greater with a 200 day moving average? alix: fair enough yields definitely impacting some parts of the market. retail sales keep rolling out. profit outlook for the second

recorder. simone is watching the move for us the stock is down about .9% but a solid quarter nonetheless. simone: these were great results and greater expectations with walmart. that is what we see in the share price today. when we look at what has happened with walmart shares in the last year they went up until they hit an all-time record high at the end of last week. the fifth straight earnings week a lot of analysts on the street thought we would get a raise here and that is what we did. one thing that is interesting to me is what is happening in e-commerce. companies are seeing a 24% jump in e-commerce sales in the united states which accounts for 80% of the business. in the second quarter eu can see what happened in the pandemic. there was a little bit of a comeback with more traffic seeming to fulfill the promises that the company made when they invested a lot more in their

online offerings. seeing a lot more traffic there. one thing that struck me as interesting and may be for the broader consumer as well cfo john david pointed out the private label brands when he was speaking on the earnings call this morning. walmart has a large share compared to others. he says he sees consumers moving to private label brands eating at home more and buying more blenders and mixers all of those things as well. that is something we could see play out among the other grocery stores and retailers in the next couple days and weeks looking at kroger next month, what we will see -- we will see if they see that as well or if walmart is taking all of their share. guy: that is the issue. is good news for walmart bad news for everybody else? thank you very much.

let's continue the conversation with cole smita. he owns target and home depot. he does not own walmart. that seems to be the narrative of the marvin good news walmart, bad news everybody else. is this the black hole of u.s. retail sucking everybody in and there is nothing left for anybody else? what you think of the environment you're looking at? cole: i don't think about it like that. to your point just a second ago, it feels more like a post-pandemic. during the pandemic, obviously walmart and target had a lot of benefit from people not being able to go anywhere else. walmart has continued to benefit from that because ultimately they have not been doing stupid things. that is the success on walmart, do not do stupid things. in comparison target has been doing stupid things to hurt their core consumer.

if you are a mother of two kids, anything to add two-year plate in the day you would be less interested in doing business. and they said what is going on in the culture wars is affecting target. he forgot the hands that brought -- that rocks the cradle is the hand that rocks the world. and he found out this question very quickly. the question is he the right person to run out this business? if he'd does not have a -- another pandemic he has to have a new strategy. alix: there is so much to unpack with the different metaphors. is there a bet on the consumer or are you talking about a certain type of consumer and lifestyle? those are different things. the latter will get less hurt if we have a soft landing or downturn. the former will not. ed: targets core customer -- cole: targets core customer is a working mother with a few kids but it is a working woman who is successful in the workplace or

in her community. i point out she is college-educated that is the difference can. send -- in comparison to walmart. the consumer is not as excited to go do business with target as you are seeing with walmart numbers. i think that has come down to what is going on in the culture battles. target has decided repeatedly, this is not the first time they have done this, they did this with the whole bathroom issue. their team likes to go to the line and cross it. walmart is having no issue like that. we do not understand why the leadership chooses to do this. when you look at the leadership demographic in america 63 persists -- percent of the people will be catholic or christian. that is in targets market why would you screw with 60% of your ballgame out of the crowd? we do not understand that. where not saying they should not want to serve everybody but the

question is who do you serve the most that is what most business is? guy: let's talk about the consumer more broadly they are. what is happening with the u.s. consumer right now? it feels increasing me -- increasingly to me that the divergence is only getting better. a look at credit card data, survey data, the fed there may data, it all seems to be telling me there is a significant portion of the u.s. consumer base that is increasingly struggling. they have one job, two jobs, three jobs that portion of the consumer base. what you think is happening here? who is best positioned to deal with that divergent? cole: put against the data you just said look at the wage data and the lowest quartile in america it continues to stop -- stomp every other area.

they are out purging -- out punching white-collar workers. you are the fed, you're sitting back and going gosh, we did not break housing or the labor market, what they broke in was certain parts of the capital market. you have the 15 year mortgage supply dry up. everything tied to capital markets is having an issue but the excess savings and the strength of the low-end wages in the u.s. economy and housing is a unstoppable force. the fed really and economists have trouble with it. alix: this is a good point there was a paper that talked about the excess savings. not everyone agrees with how much there is. the people at the chart with the rise of the pre-pandemic savings which is green and then the red is how much it is drawn down. there seems to be not that much left according to the paper from the fed. how do you see that evolving?

does it eventually, does the capital issue and tightness and flow in the number that you're talking about. cole: who can deal with this is -- the longest is the wealthiest people because they had a disproportion portion of the excess savings. we got out of the pandemic nec splurging on tv's such as luxury items and etc.. what is going on with travel right now is not low in wages. they are working. that is well -- wealthy people going out gallivanting and continuing to have fun. they continue to and because stocks and bonds are producing the terms that they like. they will chase whatever they feel good about. housing will be a good thing to chase, but you can have soever many -- only so many residents. guy: if you don't carry a lot of cash and you are getting paid right now, -- carry a lot of debt and you're getting paid right now, that is stronger right now.

it was on the top call about the worry of return of student loans. when that kicks in i think is up for debate, but i think they all mention the fact that the student loan resumption story will it them. do you agree and when do you see it happening? cole: so far in my career the biggest myth that has never proven to cause the issues that people thought has always been student loans. millennials are never going to buy houses because of student loans. that is being to be a myth as well. it is a terrible way to go out and invest in my opinion. alix: fair enough. you have to worry about tampering down expectations when retailers talk about it. cole: it is a good excuse. alix: it is not whether, it is student loans. thank you for catching up with us. let's stay on the consumer, coming up, jobs claims fell the most in the last five week showing a weakening job market

resiliency. how long will it last? we will talk about that coming up. this is bloomberg. ♪ my cpa told me i wouldn't qualify for the erc tax refund, so i called innovation refunds. their team of independent tax attorneys will work with your cpa to determine if your company is eligible. [whip sound] take the first step to see if your small business qualifies. and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com

alix: this is bloomberg markets you're looking at live coverage of the principal room. coming up tapestry ceo joins bloomberg television at 2:00 eastern time and 7:00 london. this is bloomberg. ♪ alix: u.s. weekly jobless claims fell by the most in five weeks as the labor market continues to show resilience. we just heard from cole smead betting on the lower end consumer which is where the wage growth is. we want to look at the jobs market in more detail area we are speaking with julia pollak over at ziprecruiter chief economist. we were just talking about this of how it is driving consumer growth. julia: absolutely during the pandemic the low-wage worker got unemployment benefits that often

exceeded their prior earnings and stimulus checks that allow them to improve their credit score, pay down debt, and qualify for additional goods and loans. now some of those workers who are seeing wages grow but also see inflation, they have some regrets about the auto payments they chose. guy: are these the same people that are beginning to push up the credit card numbers? julia: credit card interest rates have hit record highs and we are seeing delinquencies rise as a result. the same is true of subprime auto loans. that said, workers are still getting solid wage increases. employment is still rising. so, in many low-wage households, you have an additional people picking up jobs and additional household income coming in. that is like consumption overall is strong. alix: do you seek racks in the

labor market and if so, where? julia: right now the glaring exception in the labor market is the tech sector where 55,000 jobs have been lost this november. there were many more layoffs than that, but there is also job taking they said the same time. that tech session shows no signs of slowing yet. never another 12,000 losses in that sector in the last month.overall layoffs and firings are lower than they were in the pandemic and workers have retained a enormous amount of leverage in -- is specially in person work with face-to-face industries where recruiting remains difficult. guy: there is the view of a will not lay people off because i know the labor market is tight and i will struggle to recruit the labor that i need if i need them back. at what weight does the labor market start to snowball?

is there a possibility with the situation where a significant enough group of companies lay off workers to create a big enough pool of labor that everyone else as you know what i can lay off because i know the pool is now big enough that i can get what i want. i'm wondering how we go from feast to famine out -- and how quickly the process happens? julia: i don't think we are playing the game of musical chairs where the dynamic will suddenly shift. the dynamic we see is that companies anticipated a downturn so they been extraordinarily cautious and conservative when it comes to hiring. they've been targeted and slow to reprice -- replace and they are careful about headcount, and the gains we have seen are quite durable and resilient so far. what we have seen instead is that companies thought there would be a downturn and they staffed minimally and then they

have seen the lines of customers show up at the door and they have to catch up and do their holiday hiring a month later. alix: this texas to the question of the day. it feels like higher for longer has to happen to really crack the job market. you wonder just what it winds up really looking like. you heard from the minutes yesterday that there was some confusion of how growth and the job market is going to evolve. some are ok with over tightening. guy: ok let's think about that. what kind of rates environment -- what does the fed need to do if it wanted to create more slack in the labor market? how does the process unfold? with your experience in the recruitment world, and as an economist what is watching -- that is watching what is happening, what is the mix for the fed right now to have slack in the labor market? julia: i do not think the fed

needs to create more slack in the labor market necessarily. they have a dual mandate and usually it involves a trade-off of employment and low inflation. we seem to be in a fantasy world with no trade-offs at the moment where unemployment has not risen even as inflation has come down. real-time data suggests that inflation is actually running even lower than the most recent cp in pce report -- pci and pce report. some of the data is lagging. we expect over the next couple months that the data will improve. goldman sachs is at 2% target in the middle of next year. that suggests that the fed is perhaps done raising rates and can take a vacation now. alix: [laughter] i bet they would love to. guy: the problem with that is that vacations are currently expensive. it needs to deal with that before it can take the vacation.

maybe that is a job get inflation down and then take a vacation. julia, thank you very much. on that note, let's move on. we are not done just yet. we dive into a dramatic hedge fund feud that is fascinating. that story is next. this is bloomberg. ♪

alix: time for the wall street beat. we look at what is buzzing on wall street in the world of banking and find a. we talk about the ongoing feud between dan okta and jimmy 11 with the hedge fund to buy sculpture. break it down what is the deal? names have changed, things have happened, what is the problem? sonali: denny step

down in 2016 and we see a feud between danny out and jimmy live levin they had a close relationship before. and a lot of things have broken down. once the original management team left when sculptors started to perform worse more recently they had more significant outflows recently there was a bid bet danny och came in and say we been talking to people who might want to buy the company. fast forward have a sale from rhythm. and one of the original things that danny had said is that he wanted the original management to not stay at lace as a transaction was had -- place as a transaction was had. this stock was trading at more

than $20 a share. this gets very personal and the letter that danny och put out yesterday with the pay package bet they disputed and took legal action against, it was $20 a share and then it dropped to eight dollars at the low this year. $11 a share price that you are getting from rithm is not meeting the expectations that he was paid for a couple years ago. it is gotten very ugly and they are disputing the stance today. it is one of the most public and longest running sagas in the hedge fund history. guy: the deal that is disputed, is that ultimately going to -- is some deal going to happen here? is this a negotiation or will this ultimately end up being terminal? sonali: the ideas of $11.50 per share that is 18% premium to buy

the stock was trading at before the deal was announced. but another part is that this was supposed to close at the end of this year. you see sculptor clients yank in another billion dollars despite the performance of 8.5% in the master fund in the first half of the year. they have multiple consecutive quarters of outflows. to not have a deal is detrimental to the franchise and it is the closest -- supposed to close the deal by the end of year and to the point that dan is making the five-year average price is higher been the deal price. the hive year average price is about $16 a share. alix: how does this stack up against other hedge funds in terms of performance? how do you value it? sonali: this type of management uncertainty has moved people despite the performance. can we pull out the broader industry or a second. we focus on sculptor because it

is publicly traded and more transparent than what you would see with other funds. they have also change their strategy a little bit but let's talk about it adele for a second and switch gears. they are up on the year and you have biz because they have a multi-strategy and they benefited from commodities. you look at the scope of total hedge fund performance, you have very muted performance among the largest multi-strategy fund. that is something that investors will keep a close i -- eye on this year. because it is essentially flat on the year after the last couple years of benefits here for these funds of the world. guy: you think you have a handle on one trend and then it gets whipped underneath you. some would argue that being flat is a good thing. thank you for these fascinating stories. and the idea the story of the euro today. it is 18 19 billion dollars

worth of euros destroyed today. time and time again we are down by nearly 400%. -- 40%. we will talk about a coming up next. this is bloomberg. ♪ or filing returns. avalarahhh ahhh

>> fintech under real pressure. that is why the netherlands is bright red. the other is the stoxx 600 is below its 200 day moving averag